FCA Head of Engine and Transmission Manufacturing Brad Clark (left to right), joined by FCA North America COO Mark Stewart, Indiana Gov. Eric Holcomb, Kokomo Mayor Tyler Moore, UAW Vice President Cindy Estrada, and UAW Director Rich Rankin, announces the name of the new engine plant in Kokomo., Indiana.
FCA US
FCA spending $400M in Indiana on engines
Converting idle transmission plants will create U.S. source for turbocharged 4-cylinder engines.
Kokomo, Indiana – Fiat Chrysler Automobiles (FCA) will invest $400 million to repurpose an idled transmission plant in Kokomo, Indiana, to build the GMET4 engine – the company’s 2.0L, turbocharged, inline 4-cylinder available on the Jeep Wrangler and Cherokee.
With this investment, 1,000 Indiana jobs will be retained with nearly 200 new jobs added to support production, bringing total employment in the state to more than 8,300.
FCA North America COO Mark Stewart said, “The GMET4 will be a very important engine for us as we look to deliver on the promises we made as part of our five-year plan in 2018… A significant number of new technologies can be applied to this engine, making it relevant for the future.”
The new facility will be the source of all U.S. production for the engine currently built in Termoli, Italy. Production is expected to begin in Q2 2021.
For more than eight decades, FCA has built transmissions in Indiana, more than 90 million since record keeping began in 1974. Since 2009, the Company has invested nearly $2 billion in its four area plants to produce the eight- and nine-speed transmissions. When production of the GMET4 launches, it will mark the first time in the company’s history that it has built engines in the state.
Construction of Indiana Transmission Plant II (ITPII), which will be renamed Kokomo Engine Plant, began in 2002 and launched production of five-speed transmissions in November 2003. The plant also produced components for eight-speed transmissions. ITPII built its last five-speed transmission in August 2018 and was idled in the fall of 2019.
FCA currently operates three transmission plants and one casting plant in Indiana. The portfolio of transmissions includes four-, six-, eight- and nine-speed transmissions, as well as the SiEVT transmission for the Chrysler Pacifica plug-in hybrid electric minivan, built at the Windsor Assembly Plant in Ontario, Canada. The casting plant produces aluminum parts for automotive components, transmission and transaxle cases, and engine block castings.
BMW i4
Geneva-ish motor show roundup
The show might have been cancelled, but automakers still showed off several upcoming electric vehicles.
Cleveland, Ohio – Rapidly spreading COVID-19 cases in Europe might have cancelled the Geneva International Motor Show, but automakers had new electric vehicles (EVs) that they wanted to show off, so several of them have had webcasts and other unveilings in recent days.
Major announcements include:
BMW i4 (pictured above)
Every new electric car wins the Tesla-killer tag from some reviewer, and several are applying to BMW’s upcoming sporty coupe. That title ignores the excellent BMW i3 which beat Tesla’s Model 3 to the market by nearly a year for about the same price but failed to gain much traction.
Set for sale next year, the i4 is bigger than the i3 and more of a daily driving car than the i8 roadster. The big draw, though, will likely be its power rating. BMW is promising 390kW/530hp performance and a 270-mile range from the 80kWh battery.
BMW plans to make the car in Munich, Germany, a project expected to cost about $220 million in facility upgrades. Most of the car can be assembled on Munich’s existing lines, but the company needs specialized equipment to mount the massive battery pack under the car’s rear structure. So, the investment will go to removing existing equipment, upgrading existing lines to make up for those lost machines, and installing new battery-installation gear in the space that held more traditional assembly gear.
VW has invested heavily in a design called the modular electric drive matrix (MEB), a basic vehicle architecture that can be modified for a range of differently sized vehicles. So, the ID.4 will share many components and systems with the ID.3 that launched in Europe late last year.
The crossover will have about a 310-mile range, but VW hasn’t yet shared performance numbers for the crossover. The ID.3 starts at about $33,000 in Europe. VW hasn’t yet set prices for the upcoming ID.4.
Courtesy of Hyundai Hyundai Prophecy
Hyundai Prophecy
A concept car that may never enter production, Hyundai’s Prophecy is an attempt at a premium, luxurious, sporty EV sedan. More of a showcase for visual designs and interior creature comforts, Hyundai offered no performance or range specifications for the Prophecy.
The body, designed to be as aerodynamic as possible is highly rounded and, well, more than a bit familiar looking. Hyundai says the design offers “pristine surfaces and pure volume in combination with aesthetic harmony and functionality.”
I see a 2010s-era Volkswagen Beetle that’s been stretched at the edges to be more oval and less circle. Compressing the vehicle image by about 40% really highlights the Prophecy’s similarity to the off-the-market VW.
Compressed version of the Hyundai Prophecy (left), 2015 Volkswagen Beetle (right).
Hyundai officials have not announced any plans to make the Prophecy, but the company is expanding EV production of the Kona EV crossover to feed growing electric demand.
Ford Transit
One of the best-selling commercial van models in the world, the Transit will have an EV model for 2022 – about the same time Ford plans an EV F-150 pickup.
Ford builds the Transit in Kansas City, Missouri, and several locations outside of the U.S. The electric van will come from the U.S. plant, company officials said.
The automaker didn’t share details on specs, but that’s particularly difficult for commercial vans that have more size and shape options than most vehicles. The Transit has three roof heights, three length options, several wheelbase offerings, and drive options that could all impact battery sizing and placement.
That said, commercial vans are good candidates for electrification because they have more space for batteries than passenger cars, and the flat floors in the cargo area make battery arrangement simpler than in other types of vehicles.
About the author: Robert Schoenberger is the editor of Today's Motor Vehicles and Today's eMobility and a contributor to Today's Medical Developments and Aerospace Manufacturing and Design. He has written about the automotive industry for more than 19 years at The Plain Dealer in Cleveland, Ohio; The Courier-Journal in Louisville, Kentucky; and The Clarion-Ledger in Jackson, Mississippi.
Lansing, Michigan – General Motors is adding more than 1,200 jobs at its Lansing manufacturing operations. Lansing Grand River Assembly will add a second shift with nearly 400 employees to support the launch of the Cadillac CT4 and CT5 cars.
Lansing Delta Township Assembly will add a third shift to support production of the Chevrolet Traverse and Buick Enclave crossovers. Approximately 800 employees will be added.
Phil Kienle, vice president, GM North American Manufacturing and Labor Relations. “Our team members have proven experience in building high-quality vehicles and are well-prepared to meet the needs of our customers.”
Since 2015, GM has invested more than $1 billion into Lansing manufacturing. This includes the $36 million investment at Lansing Delta Township last year for future mid-size SUV production, as well as the $175 million investment at Lansing Grand River in 2018 to modernize tooling and equipment for the Cadillac models.
Both shift additions will be operational in the second quarter of 2020.
Lansing Delta Township Assembly has produced more than 3 million vehicles since it opened in 2006. The plant is GM’s newest plant in the United States, blending the best practices and newest technology into one facility. With more than 110 years of automotive history in the Lansing Area, LDT is proud to be a community partner and the first manufacturing facility to be a Gold Certified Leader in Energy and Environmental Design (LEED).
General Motors' Lansing Grand River Assembly is GM’s second-newest U.S. assembly plant. Lansing Grand River also builds the Chevrolet Camaro.
Hyundai's new Palisade large SUV posted nearly 7,000 units in sales in February, a statistic that likely means absolutely nothing this year.
Courtesy of Hyundai
February auto sales in record territory, but…
Calendar quirks combine to create ideal sales conditions, so take the results with a massive grain of salt.
Several major automakers including Ford, General Motors, and Fiat Chrysler (FCA) have stopped monthly reporting, so sales totals are incomplete at best
Leap year
Those warnings out of the way, February auto sales were record setters for many major automakers. Hyundai had its best February ever with sales up 16%. It’s corporate partner Kia? Up 20%.
A collection of sales headlines includes:
Mitsubishi – Up 13%, best February since 2004
Subaru – Up 5%, best February ever
Volvo cars – Up 18%, best February since 2007
Honda – Up 4%, best February ever
Mazda – Up 19%, no word on record status
Sorry, now I have to bring things back to reality. While I’ve recently argued that 2020 should be a good year for auto sales (depending on how that coronavirus thing works out), sales in the first quarter are awful indicators of automotive market strength.
The lightest three months of the year, all January, February, and March seem to do is spark unwarranted enthusiasm or pessimism in the market. And, this year it’s even worse because of calendar quirks.
Leap day added a sales day to the month, but more importantly it fell on a Saturday. So, the shortest month of the year had five weekends, something that hasn’t happened since 1992.
Some automakers report adjusted sales to compensate for the extra weekend on one month or a missing one in the next, but such mathematical games rarely provide much insight. Calendar weirdness works itself out given enough time, so quarterly numbers are best (even if Q1 is still a pretty lousy indicator).
Where does that leave us?
Sales were great for the automakers that still report monthly (Honda and Hyundai/Kia being the only majors in that group). If you adjust for the weekend, the numbers are fine. Honda swings from a gain to a slight loss – not surprising given it’s a car-heavy brand at a time when trucks and SUVs are doing better. Mazda falls from a 19% sales gain to a 10% gain.
With so few companies reporting, a month that is rarely statistically relevant, and once-in-every-three-decades calendar issue, there are few solid conclusions to take away from those monthly records.
But hey, it’s been a tough few weeks with a lot of uncertainty, the cancellation of a major global auto show, and car plants in Korea shutting down to disinfect equipment after a worker tested positive for COVID-19. So, let’s take our wins where we can get them.
About the author: Robert Schoenberger is the editor of Today's Motor Vehicles and a contributor to Today's Medical Developments and Aerospace Manufacturing and Design. He has written about the automotive industry for more than 19 years at The Plain Dealer in Cleveland, Ohio; The Courier-Journal in Louisville, Kentucky; and The Clarion-Ledger in Jackson, Mississippi.
December 2019 U.S. cutting tool consumption totaled $187.2 million, according to the U.S. Cutting Tool Institute (USCTI) and AMT – The Association For Manufacturing Technology. Reported by companies participating in the Cutting Tool Market Report collaboration, the total was down 1% from November's $189.1 million and down 1% when compared with the $189.1 million reported for December 2018. 2019's year-to-date was $2.4 billion, down 1% compared with 2018.
According to Bret Tayne, president of USCTI, “The cutting tool industry ended the year with a small decline from 2018, which was consistent with the forecasts that were produced for our industry. Despite some signs of continued slowness into the first quarter of this year, there are rays of optimism in various reports, and there may be an opportunity for rebound as discreet problems (coronavirus, commercial aviation issues, etc.) recede.”
“Orders for cutting tools fell at the end of 2019, in line with continued weakness in key manufacturing sectors such as aerospace and motor vehicles. Yet December’s decline in orders was moderate as compared to previous months, down 1% from November, which leaves them down 1% for all of 2019 over 2018,” says Mark Killion, director of U.S. Industry at Oxford Economics.
Posted by Robert Schoenberger
